Turning off the splash screen i.e. removing 'splash' from grubs 'menu.lst' also removes the issue and with the 'nvidia' module in use you can CTRL+ALT+F1 and CTRL+ALT+F7 backward and forward with no problem.
-- CTRL+ALT+F1 causes blank screen with nvidia-glx 1.0.8776+2.6.15.12-1 https://launchpad.net/bugs/72098 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs